Default on credit rating... help please!!!

Weezy

Hi guys!! I'm new here so forgive me if I sound dumb or naive, but I need help quickly!!!
My partner and I recently went to buy our first place together. A new build, 75/25 deal... I know not everyone agrees that they are the best, but it's best for us, and literally all we can go for.... but thats not the issue.
Due to this deal, lenders are limited, and we had a mortgage agreed by the Halifax, only for £90,000. They took out the £315 survey fee, but then our FA rang to say a default had come up on my partner's credit report, and Halifax refunded the fee.
We checked on Experian and there is a default for a credit card, taken in 04, defaulted in 06 that my partner knows nothing of and has had no communication of this before.
We called TSB. and they're sendig out forms to 'investigate.' He needs to supply his signature, but as the card was used in 2004, we are worried wherever the card was used won't have signed copies of receipts 5 years on, so how can we prove it wasn't him!!!
We thought that maybe we could take out a loan and pay it, even though it's not his, just to clear it, but apparently this will still appear as a default? Is there anyway we can pay it and agree to have it cleared?
I know you may say we shouldnt pay it, but if it can clear it quickly we will, as the company will only hold the house for another 2 weeks...
I cannot get a mortgage for this amount solely on my wage, and Im thinking that we wont get to do this deal for much longer, I can't see us saving a deposit in the nex few years due to rent and bills etc which is why this deal was great for getting us on the ladder, rather than paying our landlord's mortgage for him. Also, due to age, 42 and 30, our mortgage term will get shorter the longer we leave it to buy our home....
Sorry its a bit long winded, and advice would be greatly appreciated!!!!!!

feisty1

Even if the default was incorrect, this will not be resolved in 2weeks...........Yet another example of why people shouldn't be committing themselves until copies of credit report/mortgage promise are obtained.

One would hope yr FA is guiding u thru the process

Weezy

We had checked Experian, but nothing showed, even Halifax okayed this at first. I think we didn't go back far enough in dates. We haven't paid a reservation fee, but they are holding it for us. Is it pointless asking them to do this? Is there no way this will be sorted in 2 weeks anyone???

wymondham

I would save all this stress and not go ahead for now - what's the rush??

Address the credit history problem at your leisure - once this is sorted prices will have come down a fair bit (so you reduce the amount of negative equity you'll be in) and you'll be in a much better position to buy. These schemes will be around for a fair bit yet as places are not selling (hence why they have a scheme to entice you in) - I would'nt be surprised even if the same house is also still available for you in x months time....

If you think this is better than renting at the moment ... well that's another story

feisty1

Weezy wrote: »

We had checked Experian, but nothing showed, even Halifax okayed this at first. I think we didn't go back far enough in dates. We haven't paid a reservation fee, but they are holding it for us. Is it pointless asking them to do this? Is there no way this will be sorted in 2 weeks anyone???

I would obtain a full Equifax report

piggeh

...and a full Callcredit report.

I looked at one of these part shares in July when they had 1 1 bedroom flat and several (practically all ofthe block) 2 bedroom apartments available, and they are still advertising for the one bed and 2 beds so uptake it not great. I would take your time and get it sorted, most properties are not going to disappear from the market.

feisty1

No not Call Credit, I have had several clients who have obtained these & defaults have not shown up, as an adviser I have Equifax on my systems & until now they haven't let me/clients down......

piggeh

What's the harm in getting a callcredit report then? Different lenders use difference agencies, callcredit may be the smallest of the 3 but it's still worth checking.

If callcredit do not have defaults on then surely the easiest solution would then be to seek a lender that checks credit ferences with callcredit.

feisty1

which i dont even know who uses them

piggeh

According to this:

http://www.moneysavingexpert.com/cards/credit-reference

Halifax use all 3, Skipton only use CallCredit.

It is only £2, worth doing especially if Halifax are looking at all 3 scores. I do agree, they are the smallest and least significant, but worth putting right, especially if Halifax use all 3 for their lending decisions.

turbobob

IMO, you should check all three CRA's - CallCredit, Experian and Equifax. The statutory £2 reports are good enough for checking for anything that should not be on there.

No he shouldn't pay a debt that has been fraudelently taken out in his name, and yes even if he did pay it off, it would still show as a default on the credit file. Unfortunately, these things can take some time to put right.

You might also want to read up on steps you can take to prevent it happening again here http://www.cifas.org.uk/download/Identity_Fraud_Leaflet.pdf